Retro Tax Settlement: Govt may Issue Rules This Week

The government is likely to issue rules on settling retrospective tax cases this week after evaluating feedback from companies in the draft norms, a senior official said. The Centre is hopeful of a quick settlement of cases as the companies have indicated a willingness to indemnify the government against any future claims.

In September 7, Cairn Energy Signalled it was nearing a solution to its dispute, telling shareholders that it expects $1.06 billion in a settlement with the Indian government. The other 16 companies, including Vodafone, are yet to publicly indicate their intent.

“Rules are being firmed up after comments from stakeholders…

These should be announced soon,” the official said. After the final notification, the government is hopeful of settling some cases over the next six-eight weeks.

The finance ministry had on August 28 issued draft rules, seeking comments by September 4 from those engaged in retrospective tax disputes with the government.

The draft rules said companies had to indemnify the government against any future claim and drop all ongoing legal challenges. S-ET

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